www.angelbroking.com
Technical & Derivatives Report
September 10, 2020
Nifty
Bank Out
-
(
22267
)
BankNifty opened weak yesterday due to massive overnight
correction in global bourses. As the day progressed, banking
stocks kept sliding lower and remained under pressure throughout
the day. Due to some modest recovery, BankNifty ended with
nearly 500 points cut. Yesterday, although we witnessed a broad
based selling, there was some resilience seen from the benchmark
index Nifty. In fact, it did manage to give smart recovery towards
the fag end; but the banking index continued its
underperformance, that started at the beginning of the previous
week. In the process, the BankNifty not only entered our
mentioned support zone of 22550-22350 but also sneaked
slightly below it. Despite the weakness, we reiterate that it's now
reached a very strong support zone of 22350 - 22000 and hence,
it's not advisable to create bearish bets here, rather one should
look to book out existing shorts. If things with respect to
geopolitical developments do not worsen from here, we expect
some relief around current levels. On the flipside, 22400-22600
would now be seen as immediate hurdles. If any positivity has to
trigger, the index needs to surpass the mentioned resistance zone.
Key Levels
Support 1 – 22150 Resistance 1 – 22400
Support 2 – 22000 Resistance 2 – 22600
Exhibit 1: Nifty Hourly Chart
Se
nsex
(
38194)
/ Nifty
(
11278
)
The U.S. indices corrected sharply overnight which had a negative
impact on the opening for our markets. Nifty opened with gap down
around 11220 and it corrected gradually to sneak below the 11200
mark. However, the broader markets witnessed buying interest in the
later half which led to a recovery and the Nifty recovered much of
the losses to end tad below 11300, with a loss of about 40 points
over Tuesday’s close.
The sharp correction in the U.S. markets overnight had an impact on
the Asian markets yesterday. SGX Nifty hinted at a negative opening
and in line with that, Nifty started the session with a gap down. Till
noon, the index traded with a negative bias mainly led by the
banking space which underperformed the benchmark by a wide
margin. On the intraday chart, a ‘Bullish Wolfe Wave’ pattern support
was seen around the 11200 mark in Nifty. After some tug-of-war
around that support, the pattern played its role and the index
witnessed a bounce in the later half of the session. The pullback was
majorly supported by the index heavyweight Reliance Industries and
then some of the Pharma names too witnessed momentum in the
end. Now, the immediate supports for the index are placed at 11185
and 11130. The way some of the stocks showed momentum in the
last hour of the trade, we could see some bounce from the support
of the above mentioned pattern.
Exhibit 2: Nifty Bank Daily Chart
Hence, although we have been advising a sign of caution since last
few days, one should now look for stock specific buying
opportunities from a momentum trading perspective and avoid
forming short positions. The immediate resistances are around
11360 and 11450.
.Key Levels
Support 1 – 11185 Resistance 1 – 11360
Support 2 – 11130 Resistance 2 – 11450
www.angelbroking.com
Technical & Derivatives Report
September 10, 2020
Nifty Vs OI
11000
11100
11200
11300
11400
11500
11600
11700
,0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
8/20 8/24 8/26 8/28 9/1 9/3 9/7 9/9
(`000)
Openinterest Nifty
Vie
w
s
Post Wednesday's tail end fall, we started-off
yesterday's session with a downside gap. In the
initial half an hour, we saw decent recovery but soon it
got sold into and Nifty corrected below the 11200 mark.
However, decent demand was seen at the lower levels
which eventually bought the index almost towards the
11300 mark.
FIIs were net sellers cash market segment to the tune of
Rs. 959 crores. In index futures, they sold worth
Rs. 726 crores with some fall in open interest which
suggests blend of long unwinding and short formation
.
As far as F&O activities in the indices are concerned, we
saw fresh short formation in BankNifty and long
unwinding took place in case of Nifty. In the weekly
options front, we saw massive writing in 11200 and
11250 put strikes. On the other side, 11300-11450 calls
added fresh positions followed by unwinding in 11550-
11850 strikes. Highest open interest concentration is
now placed at 11000 put and 11500 call options. Now,
considering the broad based buying in yesterday's
session, we expect extension of this upmove towards
11400-11450. Hence, traders are advised trading with a
positive bias for today’s weekly expiry, intra day dips
towards 11220-11250 shall be an opportunity to buy
11250 call options
C
o
mme
n
t
s
The Nifty futures open interest has decreased by 5.22%
Bank Nifty futures open interest has increased by 4.06%
as market closed at 11278 levels.
The Nifty September future closed with a premium of
28.90 point against a premium of 2.50 point in last trading
session. The October series closed at a premium of 43.20
point.
The INDIA VIX has decreased from 22.72 to 22.23.
At the same time, the PCR-OI of Nifty decreased from
1.22 to 1.20.
Few of the liquid counters where we have seen high cost
of carry are GRASIM, JINDALSTEL, ADANIENT, GMRINFRA
and BHARTIARTL.
OI Gainers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
IDFCFIRSTB 175180000 17.47 29.40 -2.50
APOLLOHOSP 1001500 15.91 1606.45 -1.60
SUNTV 5167500 12.32 464.45 -1.50
UBL 1101100 11.17 1079.45 -0.44
CONCOR 5930022 10.55 375.10 -2.91
RBLBANK 21023600 10.01 175.60 -1.62
AXISBANK 56004000 9.08 431.25 -2.77
BAJAJFINSV 769250 8.98 6026.80 -2.84
OI Losers
SCRIP OI
OI
CHG. (%)
PRICE
PRICE
CHG. (%)
EXIDEIND 9630000 -6.83 155.75 -1.17
TORNTPOWER 2172000 -6.70 325.45 0.55
BHEL 62538000 -6.59 36.50 -2.81
CUMMINSIND 1698000 -6.48 460.35 0.40
BANKBARODA 56038800 -5.72 44.35 -1.66
RAMCOCEM 1333650 -5.65 689.85 0.03
NMDC 31965700 -4.75 91.70 2.28
NESTLEIND 433200 -3.90 16312.50 0.79
Put-Call Ratio
SCRIP PCR-OI PCR-VOL
NIFTY 1.20 0.88
BANKNIFTY 0.67 0.86
RELIANCE 0.57 0.33
ICICIBANK 0.46 0.60
INFY 0.48 0.43
Historical Volatility
SCRIP HV
ESCORTS 64.73
SBIN 54.68
GAIL 50.31
AMARAJABAT 48.11
CIPLA 43.60
www.angelbroking.com
Technical & Derivatives Report
September 10, 2020
Note: Above mentioned Bullish or Bearish Spreads in Nifty (September Series) are given as an information and not as a recommendation.
Nifty Spot =
11
278
FII Statistics for September 09, 2020
Detail Buy
Net Contracts
Open Interest
Sell
Value
(in Cr.)
Change
INDEX
FUTURES
3643.77 4369.44 (725.67) 124102 9766.14 0.54
INDEX
OPTIONS
248397.03 246983.26 1413.77
844695 63429.79 9.88
177589.05
STOCK
FUTURES
14386.08 14194.71 191.37
1211225 84310.75 0.81
STOCK
OPTIONS
6354.97 6378.18 (23.21) 94931 6526.59 4.30
Total 272781.85
271925.59
856.26
2274953
164033.27
4.13
197578.59
Turnover on September 09, 2020
Instrument
No. of
Contracts
Turnover
( in Cr. )
Change
(%)
Index Futures 4,75,405 31692.22 10.98
Index Options
2,84,17,577 19,13,209.63 39.67
Stock Futures 7,74,665 57415.07 12.08
Stock Options
11,84,457 95065.10 18.75
Total 3,08,52,104 20,97,382.02 37.11
Bull-Call Spreads
Action Strike Price Risk Reward BEP
Buy 11300 193.00
51.95 48.05 11351.95
Sell 11400 141.05
Buy 11300 193.00
93.25 106.75 11393.25
Sell 11500 99.75
Buy 11400 141.05
41.30 58.70 11441.30
Sell 11500 99.75
Bear-Put Spreads
Action Strike Price Risk Reward BEP
Buy 11200 144.85
32.60 67.40 11167.40
Sell 11100 112.25
Buy 11200 144.85
56.85 143.15 11143.15
Sell 11000 88.00
Buy 11100 112.25
24.25 75.75 11075.75
Sell 11000 88.00
Nifty Put-Call Analysis
,0
500,000
1000,000
1500,000
2000,000
2500,000
3000,000
10700 10800 10900 11000 11100 11200 11300 11400 11500 11600 11700 11800 11900 12000
Call Put
www.angelbroking.com
Technical & Derivatives Report
September 10, 2020
Da
ily
Pivot Level
s for
Nifty Constituents
Scrips
S2
S1
PIVOT
R1
R2
ADANIPORTS
331
337
342
348
353
ASIANPAINT 1,941 1,960
1,977
1,996
2,013
AXISBANK
415
423
433
441
452
BAJAJ-AUTO 2,825 2,868
2,895
2,937
2,964
BAJFINANCE 3,335 3,379
3,436
3,480
3,537
BAJAJFINSV 5,838 5,932
6,076
6,171
6,315
BPCL
394
400
405
411
415
BHARTIARTL
485
495
501
510
516
INFRATEL
202
206
210
214
218
BRITANNIA 3,662 3,700
3,724
3,763
3,787
CIPLA
693
710
723
740
752
COALINDIA
123
125
127
129
131
DRREDDY 4,295 4,362
4,403
4,470
4,511
EICHERMOT 2,099 2,138
2,164
2,203
2,230
GAIL
87
89
92
94
97
GRASIM
650
669
683
701
715
HCLTECH
700
711
721
732
742
HDFCBANK 1,081 1,089
1,099
1,107
1,118
HDFC
577
581
587
592
597
HEROMOTOCO 1,742 1,751
1,765
1,774
1,787
HINDALCO 2,795 2,849
2,885
2,939
2,975
HINDUNILVR
167
175
179
187
192
ICICIBANK 2,095 2,113
2,129
2,148
2,163
IOC
357
362
367
373
378
INDUSINDBK
77
79
81
83
84
INFY
580
592
601
613
622
ITC
913
921
933
941
953
JSW STEEL
180
182
184
186
188
KOTAKBANK
267
277
283
293
299
LT 1,293 1,309
1,330
1,347
1,367
M&M
886
898
913
925
940
MARUTI
590
602
609
621
629
NESTLEIND 7,062 7,139
7,198
7,274
7,333
NTPC 15,871
16,092
16,221
16,442
16,571
ONGC
87
89
90
92
93
POWERGRID
69
71
73
74
76
RELIANCE
171
173
176
178
180
SHREECEM 2,051 2,106
2,137
2,192
2,223
SBIN 18,847
19,124
19,345
19,622
19,843
SUNPHARMA
187
191
196
200
205
TCS
486
498
505
517
524
TATAMOTORS 2,297 2,312
2,336
2,351
2,375
TATASTEEL
133
137
139
143
145
TECHM
374
396
408
430
442
TITAN
737
745
753
761
768
ULTRACEMCO 1,137 1,149
1,160
1,173
1,184
UPL 3,743 3,789
3,825
3,871
3,907
VEDANTA
455
475
487
506
518
WIPRO
273
278
284
289
295
ZEEL
201
212
218
228
234
www.angelbroking.com
Technical & Derivatives Report
September 10, 2020
*
Research Team Tel: 022 – 39357600 (Extn. 6844) Website: www.angelbroking.com
For Technical & Derivatives Queries E-mail: technic[email protected]
DISCLAIMER
Angel Broking Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited, Bombay
Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and
Portfolio Manager and Investment Adviser with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration
number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for
accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed
public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits
and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Technical and Derivatives Team:
Sameet Chavan Chief Analyst - Technical & Derivatives [email protected]ngelbroking.com
Ruchit Jain Senior Analyst - Technical & Derivatives ruchit.jain@angelbroking.com
Rajesh Bhosale Technical Analyst rajesh.bh[email protected]roking.com
Sneha Seth Derivatives Analyst [email protected]angelbroking.com